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Transmission electron microscopy (TEM) as well as corresponding analytical techniques, such as high resolution TEM (HRTEM), energy dispersive X-ray (EDX) analysis, electron energy loss spectroscopy (EELS) and elemental mapping via a Gatan imaging filter (GIF), have been used to study the complex precipitation morphology of the commercial Fe-Cr-Al based oxide dispersion strengthened (ODS) alloy PM 2000. Formation of homogeneously distributed Y-Al-O ODS particles from Y 2 O 3 added to the metal powder is shown. Besides these ODS particles, a large amount of complex Y-Al-O/Al 2 O 3 and Y-Al-O/TiC as well as pure Al 2 O 3 inclusions with sizes significantly larger than ODS particles have been identified. A typical feature is the growth of Al 2 O 3 and Y-Al-O particles on the surface of small Ti(C,N) nuclei. Some implications of the results obtained from the mechanical properties of PM 2000 steel are discussed.